The Cycle of Inappropriate Legislation for Trade in Professional Services

Economic factors have an impact on business structures and their regulations. Sole proprietorship, partnership, and company are the main methods of conducting a business. Due to special circumstances in different countries there are different patterns of business structures. Professional services are among these special circumstances that necessitate special structures with regard to partnerships. There is no proper structure in Iran legislations for trade in professional services. This started by undermining the differences between the Company and the Firm which eradicated the necessary elements for trade in professional services. Inconsistencies in subsequent legislations exacerbated this condition. Now in a new Commercial Bill there are provisions that pose more challenges on trade in professional services. This article discusses the key factors to improve trade in professional services using collective behavior theories, the history of business structures, and comparative law.